Feltex class action in court

Feltex director Peter David hunter outside the Auckland District Court. Photo / Dan Purcell

A four-day hearing is being held in the High Court at Christchurch this week to determine whether the investors can take a class action case against former Feltex directors.

Investors are claimng the company's prospectus in 2004, the year it floated, contained information that was misleading or wrong, or omitted to make information available that would have affected people's decision to invest in Feltex.

The defendants include former chairman Tim Saunders, former chief executive Sam Magill and former directors John Feeney, Craig Horrocks, Peter Hunter, Peter Thomas and Joan Withers. Former director John Hagen is not involved in these proceedings. The defendants have denied the claims.

In August, former Feltex directors Saunders, Feeney, Hunter, Thomas and Hagen were found not guilty of alleged Securities Act breaches at the Auckland District Court.

Also targeted in the action is Credit Suisse First Boston Asian Merchant Partners, who offered Feltex for sale, Credit Suisse Private Equity and joint lead float managers, First New Zealand Capital and Forsyth Barr.

Feltex's collapsed in 2006 cost 8000 investors millions.